Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
February 18th, 2015
Benefits & Administration
Disruptions Take a Bite Out of Retirement Savings
Major life events—unemployment, divorce, serious health issues, buying a home—can disrupt long-term savings and investing, and negatively impact retirement plans, according to TD Ameritrade’s 2015 Financial Disruptions Survey. The survey explores the impact of these life events on the average American’s long-term savings habits, reveals a frightening economic hit and uncovers lessons learned.Read more >
An emphasis on non-traditional wellness initiatives is growing as employers try to cut health-related costs, a survey finds. Fifty-nine percent of businesses offer wellness initiatives primarily to invest in or increase worker health and engagement, while 41% aim to control or reduce health-related costs, according to a survey from the International Foundation of Employee Benefit Plans. Approximately one in four (26%) organizations with wellness initiatives is analyzing the return on the investment (ROI) of their programs, and 93% are achieving positive results.Read more >
Fitch Warns of Volatility in Public Pension Reporting
The higher ratios of assets to liabilities being reported by many public pension systems in fiscal 2014 under new Governmental Accounting Standards Board Statement 67 (GASB 67) should be viewed with caution, Fitch Ratings warns. The agency says most public pension systems are reporting materially higher asset values under the new GASB standards, reflecting immediate recognition of several years of strong market gains not yet fully incorporated under the asset smoothing practices allowed by previous GASB standards. According to Fitch, reported asset values are now fully subject to market cyclicality, and thus the ratio of assets to liabilities reported by systems will rise and fall far more sharply than the funded ratio reported under prior GASB standards.Read more >
Sponsored message from SEI
SEI’s DC Trends Research Series investigates the actions plan sponsors are taking in terms of simplifying the menus of their defined contribution plans.Read more >